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{{Dial-A-Law TOC|expanded = credit}}
==What is a debt?==
==Is it worth trying to collect your debt?==
No one enjoys collecting debts, but sometimes you have to must act quickly to recover money owed to you. First, you should decide whether to proceed at all. If the debt is small, or if the debtor is bankrupt or unlikely to repay anything, it may cost you more time and money to collect than the debt is worth.
==If you want to collect, what are your options?==
You can:
*hire a collection agency.
*try to collect yourself.
==How much will a collection agency or lawyer cost?==
Collection agencies often charge between 25% and 50% of the amount they recover. Lawyers often charge between $200 and $500 an hour, plus expenses. Some lawyers will work for a contingency fee—a percentage of what they recover. So if they don’t recover anything, you don’t have to pay for their services, but you may still have to pay expenses. If you hire a lawyer on for a contingency fee basis, you should get a written contract outlining what you will have to pay, and when.
Neither collection agencies nor lawyers can guarantee that they will recover anything.
You can consult a lawyer through the Canadian Bar Association’s [http://www.cbabc.org/For-the-Public/Lawyer-Referral-Service Lawyer Referral Service]. A consultation for up to 30 minutes is $25 plus tax. That can help you decide what to do.
==Two-year time limit to sue==
A two-year limit applies to most debts that become due after June 1, 2013. If you don’t start to sue within 2 years, you’ll likely lose your right to collect the debt. There may be a longer time limit for some debts that became due before June 1, 2013. If the time limit is coming up soon for a debt owed to you, and you want to keep your right to collect, you should start to sue as soon as possible. If you are not sure about the time limit, get legal advice before you sue. Because if you start a lawsuit after the deadline, you may have to pay the debtor’s legal costs.
==Gather the facts and the evidence==
*the reason why the debt hasn’t been paid, if you know.
The information and documents will help with collecting you collect the debt.
==Start by contacting the debtor yourself==
==Sending a demand letter may help==
A “demand” demand letter is a letter demanding payment of the debt. You may want to offer practical payment options that you will accept, including payment by credit card or post-dated cheques. The letter can’t threaten to take improper action to collect the debt. But you should end your letter by saying that you “reserve the right to take legal proceedings” or “intend to take legal proceedings” to collect the debt, plus interest and costs of the legal proceedings, if the debtor doesn’t make satisfactory payment arrangements within a certain time (typically 7 to 30 days).
==What if you want to sue?==
If the debtor does not pay, you may want to sue. You can sue in Small Claims Court or BC Supreme Court do that if the debt arose in BC, or if the debtor lives in , or carries on business , in BC. Depending on the amount you are seeking (explained below) you sue in '''small claims court''' or '''BC supreme court'''. Courthouses for Small Claims Court small claims court and Supreme Court supreme court are located throughout BBC. If you are seeking up to $5,000, you should file a claim with the [https://civilresolutionbc.Cca/ Civil Resolution Tribunal].
Just starting to sue will sometimes cause make the debtor to pay. And once you start to sue, you may be able to collect the debt from the debtor’s employer and others who owe money to the debtor, using “garnishment” garnishment proceedings. Script [[Garnishment (Script 251)|251]] has more information on this.
==When can you to use Small Claims Court?small claims court and the Civil Resolution Tribunal==Use For amounts between $5,001 and $35,000, use [http://www.provincialcourt.bc.ca/types-of-cases/small-claims-matters Small Claims Courtsmall claims court] if you are suing for $25,000 or less. You don’t have to use a lawyer in Small Claims Courtsmall claims court. And it’s less expensive and less risky than going to Supreme Courtsupreme court. If the debtor owes you more than $2535,000, you can sue for the maximum $25000 35,000 and forget the rest. You start a Small Claims Court lawsuit by filing a Notice of Claim at the right Small Claims Court Registry, often the registry closest to where the debtor lives or carries on business.
You start a small claims court lawsuit by filing a notice of claim at the right small claims court registry, often the registry closest to where the debtor lives or carries on business. The loser in Small Claims Court small claims court must usually pay limited legal expenses to the winner. For more information on suing in small claims court, check the [http://www.cbabc.org/For-the-Public/Dial-A-Law/Scripts/Small-Claims-Court Dial-A-Law scripts on small claims court].
For more information on suing in Small Claims Courtamounts up to $5,000, check use the [httphttps://wwwcivilresolutionbc.ca/ Civil Resolution Tribunal]. It uses an online claim system.cbabcIts website has more information.org/For-You don’t have to use a lawyer with the-Public/Dial-A-Law/Scripts/Small-Claims-Court Dial-A-Law scripts on Small Claims Court]tribunal.
==When do you have to use Supreme Court?supreme court==To collect more than For amounts over $2535,000, you have to sue in use [http://www.courts.gov.bc.ca/supreme_court/ BC Supreme Court]. This can be is more complicated and expensive than Small Claims Courtsmall claims court, and you should hire a lawyer, or at least speak to a lawyer before starting the lawsuit. For more information about suing in Supreme Court, check the [http://www.courts.gov.bc.ca/supreme_court/self-represented_litigants Supreme Court website for self-represented litigants].
==What happens after you get a court judgment?==
*garnish the debtor’s wages or money owed to the debtor.
[updated April 2015October 2017]
'''The above was last reviewed for accuracy by Robert Rogers and Barry Promislow and Robert Rogers, and edited by John Blois.'''
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